Asian Shares Mixed As Inflation And Fed Worries Mount

Asian stocks ended mixed on Monday as Middle East tensions persisted, hawkish signals from Federal Reserve policymakers bolstered the case for another Fed rate hike this year, and new data showed China’s industrial profit growth slowed further in August.

Oil prices and bond yields extended their climb as U.S. President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz and signaled possible new military strikes after midterm elections.

While Trump said he expects negotiations to resume this week. Iran said it would not soften its conditions. Iran’s Foreign Minister Abbas Araghchi expressed hopes for a diplomatic solution, but warned the country is prepared for war with the United States to resume.